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This paper considers to what extent it is possible for multi-national corporations to operate a study global strategy in the context of the contemporary globalized business environment. In analyzing the question, the paper uses of two key academic frameworks in the form of Yip's five levers of global strategy and a PESTLE analysis. First, the paper discusses the difference between a multi-national strategy and a global strategy. According to the paper, before a company can benefit from a global strategy it must first develop a core strategy for a competitive advantage. Next, it gives an in-depth presentation of Yip's approach, listing the necessary elements of a global strategy. Then, the paper addresses how to use a PESTLE analysis that deduce the relevant factors which may affect a firm's ability to enact a global strategy. Each element is described at length. The paper concludes by stating that global strategies are a possibility for some firms, however the practicality of such strategies may be as reliant upon the specific considerations of the industry as they are the desire of strategy makes within an organization.
From the Paper:"Here the key consideration for firms in implementing a global strategy is which markets to invest in and what level of activity they wish to operate within the market. Choice of country selection may be based upon a range of activities including macro level factors such as those associated with a PESTLE analysis (Johnson et al, 2008) as well as other industry related factors such as those highlighted in a five forces analysis (Lynch, 2009) or national diamond (Porter, 1998). In general terms, companies will seek to participate in a market for two key reasons, firstly to access greater levels of sales hence following a market seeking rational for the participation in a given market (Krugman et al, 2012). Alternatively a firm may seek to enter a market so as to gain access to key resources such as low cost labour or a physical resource such as raw materials, in this case the firm may be seen undertaking a resources seeking rational for participating in a given market (Krugman et al, 2012). Here, understanding the key motivation of a firm for participating in a given market is likely to dictate the level and type of activity, for instance while Apple's participation on the UK market may be seen as relating only to desire for additional sales..."
Sample of Sources Used:
- Brassington, F, Pettitt, S. 2006. Principals of marketing. 2nd ed. Harlow: FT Prentice Hall.
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- Grant, R, M. 2008. Contemporary strategy analysis. 6th ed. Oxford: Blackwell Publishing.
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Cite this Research Paper:
Globalization Business Strategy (2012, September 23) Retrieved December 02, 2020, from https://www.academon.com/research-paper/globalization-business-strategy-151754/
"Globalization Business Strategy" 23 September 2012. Web. 02 December. 2020. <https://www.academon.com/research-paper/globalization-business-strategy-151754/>